Insurance companies use new replacement-cost, which is different from reproduction cost. For example, you would not be able to reproduce a home with asbestos siding or knob-and-tube wiring. Some companies want you to have coverage that is at least 80% of the new replacement-cost. Policies range in price based on options. You can choose between options that include actual-replacement cost or a depreciated-replacement cost. For example, if you had a fire that destroyed your 10-year old TV, actual-replacement cost would provide for a new TV; the depreciated-replacement cost might give you $50. You can add unique coverage for flood zone, earthquake, home business use, mine subsidence, etc. Your deductible ($100, $500, $1000, etc.) also makes a difference. Price around with different agents until you get the best deal for your situation.